UPS Spends $1 Billion a Year on Big Data: For What?

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Nov. 8 (Bloomberg) -- Dave Barnes, chief information officer at UPS, discusses how technology has changed the shipping business and cutting fuel and company costs with the use of big data. He speaks on Bloomberg Television’s “Bloomberg Surveillance.”

Decades ago is now the chief information officer and is joining us from atlanta.

How much more inefficient has ups become in the four decades since you are packing boxes?

-- you were packing boxes?

We have used an amazing amount of technology to transform our business.

It is so substantially different than when i joined.

We use handheld devices with their drivers and these are state-of-the-art and it allows us to have degrees of optimization and levels of service that are unparalleled.

What exactly is the data project doing now?

We know it is costing $1 billion.

How does it work and how much will it save ups?

Ups has a strong foot in technology.

We backed that commitment with investment about $1 billion per year and we are just announcing a new exciting software product called o'ryan.

The objective is to put it in our drivers hands that provides additional optimization and navigational capabilities to make our drivers that are already the most efficient in the industry even that much more efficient.

Orion is exciting because it drives great savings.

How much?

Do you have a number on that?

Certainly, just one mile per day for every dryer over the course of the year would have savings of up to $50 million.

Wow, what i appreciate as a consumer is the inside look at how something like my iphone 5s moves from the factory in china to my front door through the checking app -- the tracking app.

It took five business days to get from china to the united states, 1.5 days was in the united states which is quick.

How do you get something to move more quickly and other parts of the world to match that kind of speed you get in the united states?

Ups has made smart investments that connect their systems with our millions of customers.

We are able to move large amounts of data very efficiently.

It goes ahead of the packages and it allows us to preclear those packages with u.s. customs so as the planes land in louisville, the packages margin to our domestic sort them out to your home.

What does the new technology do that you cannot do on google maps?

Google maps is certainly good but ups has taken the combination of the massive amount of data we have, proprietary mapping software, with a secret ingredient which is our drivers expertise and using those in a combination.

We have very specific routing that drives les miles, less time and allows us to save the $50 million i was talking about.

What is the distinction between you and fedex right now?

Within the logistics you working, what is the ups difference versus your arch competitor?

If you take a look at ups, we excel at the application of technology to advance our business.

We have over 6 million customers that have signed up for my choice which we announced two years ago and allows you as a consumer to take control of the delivery experience.

From our smartphones, we can control ups drivers.

If we are not going to be home on a packages schedule, we can reroute the package to a ups store or a neighbor of choice or have you ps hold a package for it it is that type of technology that optimizes the customer experience which is a key to our success.

Thanks for joining us.

This text has been automatically generated. It may not be 100% accurate.

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